SDSU BA 323 Finance Exam 1 |Latest Questions & Verified Answers 2025/2026

SDSU BA 323 Finance Exam 1 |Latest Questions & Verified Answers 2025/2026 What is the main goal of the corporation? - Correct Answer To make capital gains for shareholders. Maximize value of the firm. Who ultimately owns the corporation? What is the relationship between shareholders, the board of directors, and management? - Correct Answer Shareholders ultimately own the corporation. Management (managers) are naturally inclined to act in their own interests but that may not be in the best interests of shareholders. The board of directors - elected by the shareholders - can oversee managerial behavior through corporate governance. What are the 3 most important management positions? - Correct Answer CEO, COO, CFO What is the Sarbanes-Oxley legislation? Why was it passed? - Correct Answer Sarbanes-Oxley was passed in 2002 as a result of the Enron and Worldcom scandals. It makes corporate management legally responsible for the accuracy of their financial statements. What is the major disadvantages and advantages of corporations compared to other forms of business organizations? - Correct Answer Advantages: Ease of raising money